The newly launched Hyperliquid Policy Center (HPC) has formally stepped into the U.S. debate over prediction market regulation, filing comments with the Commodity Futures Trading Commission (CFTC) in response to the agency’s Advance Notice of Proposed Rulemaking (ANPRM) on prediction markets.
Led by lawyer and crypto policy figure Jake Chervinsky, the Washington, D.C.-based nonprofit argues the CFTC should adopt a flexible, function-based regulatory approach that can accommodate decentralized market designs. In its Thursday comment letter, HPC called for an explicit pathway allowing U.S. participants to access decentralized prediction markets while stressing the importance of preserving — and encouraging — American leadership in decentralized finance innovation.
HPC frames prediction markets as part of the broader U.S. derivatives tradition: federal rules exist to support price discovery, help producers and consumers hedge risk, and produce reliable market signals. The center describes public, market-driven prices as “a public good” because they aggregate dispersed information and can outperform less structured forecasting methods. It also notes that prediction market pricing already feeds mainstream infrastructure — integrated into trading terminals, financial media, and social channels.
The policy center argues decentralized prediction markets offer structural advantages rooted in design rather than operator discretion. Key features highlighted include transparency, non-custodial settlement, built-in operational resilience, and composability — the ability for market data and collateral to interact directly with other on-chain components such as smart contracts, trading tools, and risk-management protocols.
HPC says those traits can advance CFTC objectives discussed in the ANPRM, including impartial access, settlement integrity, customer protection, and effective market surveillance. But the center warns that rulemaking aimed at centralized platforms should not lock in assumptions that a single exchange operator must sit at the system’s core or that surveillance and settlement must follow traditional operator-centric models. HPC adds that enabling U.S. access to decentralized prediction markets will require work beyond the ANPRM, but believes the CFTC still has an opportunity to shape an inclusive pathway.
The policy filing arrives amid active development around Hyperliquid itself. NewsBTC recently reported that Hyperliquid is testing a system upgrade called HIP-4, designed to let traders wager on real-world outcomes — a move that could widen the platform’s reach as it continues rapid expansion.
Market snapshot: Hyperliquid’s native token HYPE was trading around $39 at the time of filing, down roughly 6% over the past week.
Why this matters: The CFTC’s approach could determine whether decentralized prediction markets become a viable option for U.S. users or are effectively sidelined by rules tailored to centralized operators. Watch for follow-up rulemaking from the CFTC and additional technical proposals from Hyperliquid as both policy and product developments converge.
Read more AI-generated news on: undefined/news
